Yahoo Finance These Are the 20 Most Underpriced Housing Markets in the U.S.
Investing in real estate is one many ways people create a path to wealth, and is why prospective homebuyers shop for properties in communities where homes will appreciate in value overtime. Before choosing a place to live, homebuyers often will work with their real estate agent to find out the average home value in the area or do their own internet sleuthing.
After all, new homeowners want to move in knowing that equity is growing and confident they’ve made an incredible purchase.
Learn: This Is the One Type of Debt That ‘Terrifies’ Dave Ramsey
Also: 6 Unusual Ways To Make Extra Money (That Actually Work)
But what are the best cities to buy a home to achieve financial growth in the investment? GOBankingRates did the research for you, analyzing data from Zillow using the Zillow Median List Prices and the Zillow Home Value Index for Single Family Homes. The 2023 average home value was subtracted from each city’s median list price. GOBankingRates then ranked the top 20 cities in terms of the largest difference between the value and list price. Those looking to find a new home might want to look in one of these 20 cities for a potential great investment.
Cape Coral, Florida
2023 median list price: $169,989
2023 average home value: $419,840
Difference between list price and home value: $249,851
Florida Retirees are Fleeing: 7 Items That Are Simply Too Expensive in the Sunshine State
Grant Cardone: These Will Be the Top Places To Buy Real Estate Over the Next Decade
Sponsored: Owe the IRS $10K or more? Schedule a FREE consultation to see if you qualify for tax relief.
Eau Claire, Wisconsin
2023 median list price: $178,089
2023 average home value: $288,964
Difference between list price and home value: $110,875
Find Out: 5 Reasons the Housing Market is Reversing
Urban Honolulu, Hawaii
2023 median list price: $984,436
2023 average home value: $1,057,256
Difference between list price and home value: $72,819
Punta Gorda, Florida
2023 median list price: $318,481
2023 average home value: $378,501
Difference between list price and home value: $60,020
San Francisco, California
2023 median list price: $1,136,056
2023 average home value: $1,189,841
Difference between list price and home value: $53,785
Read More: Could You Afford a Vacation Home in Europe? Check Out the Prices in These 8 Cities
Milwaukee, Wisconsin
2023 median list price: $286,044
2023 average home value: $334,836
Difference between list price and home value: $48,791
Macon, Georgia
2023 median list price: $123,167
2023 average home value: $171,606
Difference between list price and home value: $48,439
Cedar Rapids, Iowa
2023 median list price: $177,746
2023 average home value: $225,839
Difference between list price and home value: $48,093
See: 10 Affordable U.S. Small Towns With a Great Quality of Life
Baltimore, Maryland
2023 median list price: $328,544
2023 average home value: $374,024
Difference between list price and home value: $45,480
Philadelphia, Pennsylvania
2023 median list price: $302,803
2023 average home value: $344,873
Difference between list price and home value: $42,071
Lake Havasu City, Arizona
2023 median list price: $320,231
2023 average home value: $361,620
Difference between list price and home value: $41,389
Learn: How To Avoid Paying Taxes When You Sell Your House
Rochester, New York
2023 median list price: $191,600
2023 average home value: $230,830
Difference between list price and home value: $39,230
Asheville, North Carolina
2023 median list price: $380,239
2023 average home value: $415,625
Difference between list price and home value: $35,386
Buffalo, New York
2023 median list price: $213,783
2023 average home value: $247,822
Difference between list price and home value: $34,039
Real Estate Transfer: Baby Boomers Secure Generational Wealth by Transferring Property to Children
Racine, Wisconsin
2023 median list price: $228,853
2023 average home value: $262,844
Difference between list price and home value: $33,991
St. Louis, Missouri
2023 median list price: $210,528
2023 average home value: $243,391
Difference between list price and home value: $32,864
Muskegon, Michigan
2023 median list price: $180,644
2023 average home value: $211,526
Difference between list price and home value: $30,882
Find Out: Why Retirees Are Expected To Sell Their Homes in These 10 Cities
Detroit, Michigan
2023 median list price: $211,200
2023 average home value: $241,852
Difference between list price and home value: $30,652
Harrisburg, Pennsylvania
2023 median list price: $236,172
2023 average home value: $266,254
Difference between list price and home value: $30,082
Akron, Ohio
2023 median list price: $177,300
2023 average home value: $205,482
Difference between list price and home value: $28,182
5 Cities Becoming Popular With Baby Boomers: Are They Right for Your Retirement Years?
Read More: 5 Expensive Renovations Homeowners Always Regret
Whether you’re looking for a new home to live in for the next several years or an investment property to bring in some extra income, these cities are a great place to start.
To find the Metro areas with the most underpriced homes, GOBankingRates analyzed data from Zillow using the Zillow Median List Prices and the Zillow Home Value Index for Single Family Homes. GOBankingRates found (1) the 2023 average median listing price and (2) the 2023 average home values. Then, GOBankingRates calculated the difference, sorted by the largest differences, and kept the top results. All data is up-to-date as of August 8, 2023.
Photo Disclaimer: Please note photos are for representational purposes only. As a result, some of the photos might not reflect the locations listed in this article.
More From GOBankingRates
I'm a Costco Superfan: These Are the 5 Highest-Quality Kirkland Food Items
The Reason Your Credit Card Interest Rate is Holding You Back Financially
6 Ways to Tell If You're Financially Smarter Than the Average American
This article originally appeared on GOBankingRates.com: These Are the 20 Most Underpriced Housing Markets in the U.S.
